R.R. Donnelley Bonds Slide On Buyout Rumor

R.R. Donnelley & Sons Company bonds fell on rumors the printing company will be involved in a leveraged buyout.

  • 11 Aug 2006
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R.R. Donnelley & Sons Company bonds fell on rumors the printing company will be involved in a leveraged buyout. Its 5 1/2% '15 bonds fell four points to 87 7/8, while its 4.95% '14 notes were down to 86.7 from 93 1/2. It is unclear who the potential buyer may be.

Research firm Gimme Credit said it does not see R.R. Donnelley as an attractive buyout target, because its EBITDA margins, which have averaged 14% over the past three years, fall far below those generated by most LBO candidates.

R.R. Donnelley's free cash flow was $250 million in 2005 and it currently has $139 million in cash, according to a Gimme Credit report. "Most leveraged buyers are looking for greater cash pools to use to reduce the debt incurred in the buyout. R.R. Donnelley does not have much in the way of assets that it could sell to finance the acquisition," said the report. It added the company's forms and labels business could be a candidate for sale but doubts it would generate many proceeds. A R.R. Donnelley spokesman did not return calls seeking comment.

  • 11 Aug 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%